Homeowner’s insurance coverage and premiums differ by the insurance company, and this is no different for those that live in Colorado.
Whether you are buying insurance for the first time or shopping around to get better coverage, homeowners insurance should meet your needs. Getting the best price you can for the coverage you need is also important. Being an informed shopper will more likely get you the best possible coverage at the best possible price. However, before you shop, you need to know where to look for insurance.
Where Do I Buy Colorado Home Insurance
Quotes are approximations of what your premiums will be for a particular coverage with a particular insurer. It is a good rule of thumb to get at least three quotes before purchasing insurance. Working with anindependent agent, they will be able to shop multiple carriers for you.
Do not panic if you do not have all of the suggested information; get what you can, and our agents can help with the rest.
This guide will prepare you to make a well-informed decision when purchasing homeowners insurance allowing you to get the coverage you not only want but can afford.
Information You Will Need for a Homeowners Quote
You will need quite a bit of information to get a premium quote, but it should be relatively easy for you to obtain.
- Date of birth
- Social Security number
- Best contact information
- Marital status
- Information about your job
- Current insurance coverage
- Claims history
- Other residents of the home
An agent will ask some basic questions about the home you want to insure. Questions like the year it was built, the number of stories, if there is brick or wood siding and if there have been any updates. Below are some additional questions about you, the insured that companies will want to know. Insurers may also use outside sources to get other information about you. A couple of the most common is a credit based insurance score or a Comprehensive Loss Underwriting Exchange or CLUE report.
- How long have you resided in the home?
- Will anyone live with you that is not a relative?
- Do any smokers live in the home?
- Do you have any dogs and what breed(s)?
- Do you run a home based business?
- Do you own any exotic pets or other animals?
What’s With All the Questions
Based on the answers, the agent or insurance company representative can give a rough estimate of the expense to rebuild your home. Acquiring more than one quote will provide you with various estimates of the cost to rebuild. There is no guarantee but current estimates avoid problems like having the home underinsured. The coverage limit you choose is based on the estimated cost to rebuild your home, not current market value or what you may have purchased it for. Mortgage lenders want you to have at least enough insurance to pay off your loan. Avoid the temptation to insure your home for less than thecost to rebuild it, doing so will leave you paying thousands of dollars out of pocket to rebuild a destroyed home.
Colorado Homeowners Insurance Policies
Basic Policy Form – Provides coverage for your home and personal property, but only due to damage or loss by fire, smoke, wind, hail, lightning, explosion, vehicles, civil unrest, theft or vandalism, sometimes called the HO-1 policy form. It is the most basic and least expensive homeowner’s insurance coverage and costs less than other policy forms. It covers your home and contents for their actual cash value.
Broad Form Policy – Provides coverage for your home and property, but only for damage or loss resulting from perils specifically listed in the policy, sometimes called the HO-2 policy form or named peril policy form. It provides slightly more coverage than the basic policy form. This policy covers your home for its replacement cost value and your belongings for their actual cash value.
Special Form Policy –Provides coverage for your home against all perils except those explicitly listed as exclusions in the policy. It covers your personal property, but only when damage or loss occurs from perils expressly listed in the policy. Often called the HO-3 policy form or special cause of loss form. It is the most popular type of homeowner’s insurance coverage, covering more than the basic policy form but less than the comprehensive policy. The policy covers your home for its replacement cost value and your contents for their actual cash value.
Comprehensive Policy – Provides coverage for your home and personal property against all perils except those explicitly listed as exclusions in the policy. Sometimes called the HO-5, premier or open peril policy form. It may cost more than other policies but provides the most coverage of any of the policy forms. This policy covers your home and personal belongings for their replacement cost value.
Modified Coverage Form Policy – Provides coverage for your home and personal property if damage or loss occurs due to perils explicitly listed in the policy. Sometimes called the HO-8 policy form. This policy is for older homes, where the cost to rebuild surpasses the market value. This form is comparable to the basic policy form but covering less than the broad form policy and comprehensive policy. This policy covers your home and contents for their actual cash value.